Coffs Harbour Council proposes refunds after business incentive policy exclusions

A range of businesses have missed out on rebates designed to boost business activity. Now Council is faced with forking out more than $60,000 in refunds.

Four development applications for businesses on Harbour Drive were excluded from the policy.

Council could pay approximately $62,000 in refunds to business owners after they were unwittingly excluded from a business incentive policy because of bad wording.

The Business Incentives Policy, enacted by Coffs Harbour City Council in 2018, was designed to encourage economic development by offering development application discounts for new business ventures.

However, more than a year later it was discovered an error in the policy wording excluded a wide range of businesses such as retail shops, offices, retail buildings, cafes, restaurants, pubs and other food and beverage operators.

The issue stemmed from the use of ‘business premises/use’ rather than ‘commercial premises/use’ and while the wording was changed in February 2020, Council staff are recommending business owners excluded by the original policy be refunded.

A report to councillors shows 12 businesses were excluded from the policy, some of which did not end up proceeding with their development application due to the costs being too high.

The next Coffs Harbour City Council meeting is on Thursday April 22.

“By agreeing to refund contributions to businesses who were excluded from accessing the Business Incentive Policy, Council is upholding the true intent of the policy,” the report states.

The report also notes a number of the businesses paid their contributions but with “negative comments” and proceeding with refunds represented a “fair and reasonable approach”.

“It could be considered inequitable that retail, office and food and beverage operators who submitted a development application between September 13 2018 and February 13 2020 were charged for Section 64 and car parking contributions” the report states.

“Particularly when other operators such as a hair dressing salon or a dry cleaning business did not have to pay these contributions due an unintended consequence.

“The refunds will have a positive impact on the financial sustainability of their organisation.

Councillors will make a decision on whether to refund Section 64 and car parking Contributions to businesses who were excluded from the Business Incentive Policy at Thursday’s council meeting.